The report by Jung paved the way for holding of fresh polls in the capital which is under President's Rule since February after the AAP government quit after ruling for 49 days.
The Union Cabinet is likely to take a decision on Jung's report soon. Sources in the Lt Governor's office said Jung in his report to President Pranab Mukherjee mentioned that all three main political parties BJP, AAP and Congress expressed inability to form government and conveyed that they were ready to face fresh election.
With all the three main parties favouring fresh mandate, the LG recommended to the President dissolution of the Assembly. The LG held consultations yesterday with political parties in the wake of the Supreme Court putting the issue on the fast track and giving him time till November 11 to explore the possibility of forming a government.
The court was hearing AAP's petition seeking early dissolution of the Assembly which has been under suspended animation since February after the fall of the AAP government.
Sources said the LG had offered BJP a chance to form government but the party declined saying it does not have the numbers. They said the decision not to accept an offer by the Lt Governor to take a shot at power was taken at a meeting of top central leaders of the party on Sunday.
The party felt it should go for polls as enthusiasm among the party workers has increased following victories in assembly elections in Maharashtra and Haryana.